No deductions from final cane payment
Monday 26th October 2020
The National Federation Party says there shouldn’t be any deductions made from the proceeds of the final sugarcane payment for the 2019 season that is due to be paid before this Friday (30th October).
And NFP Vice-President Davendra Naidu says the actual amount of the cane payment should be $10.41 per tonne of sugarcane to ensure that cane growers receive the full guaranteed price of $85 per tonne for the 2019 harvesting and crushing season.
Naidu points out that $10.41 per tonne is the correct amount and not $9.74 per tonne as because of the deduction of 67 cents per tonne of cane for sugar research institute and other industry costs from the 4th cane payment paid in May this year.
“The NFP maintains that 67 cents per tonne should have come from the gross industry proceeds before certification of the 4th payment because the deduction of this sum meant growers were short-changed by $1.21 million”.
“If this amount isn’t included in the top-up for the final payment, then the final payment would bring the total price to $84.33 per tonne and not $85 per tonne as guaranteed by government”.
“Therefore, growers expect $10.41 per tonne as final payment and nothing less”.
“There shouldn’t be any deductions from this amount in order to facilitate meaningful Diwali that will be celebrated on 15th November, as well the festive season”.
“Deferral of deductions would be in line with reprieve that has been provided to businesses in respect of loan repayments”.
“We reiterate that firstly there shouldn’t be any deductions from the final caner payment for 2019, and secondly, for the payment to be $10,.41 per tonne to ensure compliance with guaranteed price of $85 per tonne”.
“The last thing growers expect during the current extremely difficult times is massive reduction to net. sum of proceeds through either deductions or short-changing their income”.